Categories: Business and Finance

US Steel: Activist Investor Flips to Support Nippon Deal

U.S. Steel announced on Tuesday that activist Ancora Holdings has “flip-flopped” from its previous opposition to the proposed merger between Japan’s Nippon Steel and U.S. Steel.

Ancora recently announced a plan in connection with the proposed transaction that could result in a cash offer at $75 per share. The investor, who owns less than one percent of the company, has said it will not stand in the way of the Nippon deal of $55 per share.

U.S. Steel, based in Pittsburgh, called Ancora’s “last-minute plan” inconsistent and asked, “If Ancora believes that their plan will deliver $75+ per shares, why do they suddenly support a cash deal of $55 per share with Nippon Steel?”

Separately, Ancora called on U.S. Steel’s board on Monday to postpone its annual shareholders meeting until after June 18th. The meeting will take place on Friday, May 6.

The decision comes after President Donald Trump instructed the Committee on Foreign Investment (CFI) to complete and conduct a new evaluation of the transaction in 45 days.

Ancora has launched a challenge in the boardroom at U.S. Steel to remove the CEO David Burritt.

U.S. Steel stated in a press release on Tuesday that the shareholders should vote for each of the 10 nominees for director standing for election and “discard any materials sent by Ancora.”

Ancora has not responded to comments made late on Tuesday.

American Conservatives

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